Business
Standby Equity Distribution A
Standby Equity Distribution A.
About this update from Corcel Plc
[{"type":"text","content":"\n RNS Number : 8357Y Regency Mines PLC 10 September 2009 \n \nRegency Mines PLC\n('Regency', 'Regency Mines' or the 'Company')\n\nStandby Equity Distribution Agreement\n\n10 September 2009\n\nRegency Mines the mining exploration and mineral investment company with interests in copper and nickel in Western Australia, Queensland, and Papua New Guinea announces that on 9 September 2009 it entered into Standby Equity Distribution Agreement ('SEDA') for up to £3 million with YA Global Master SPV, LTD. ('YA Global'), which is advised by Yorkville Advisors LLC, an investment group headquartered in New Jersey and active across North America, Europe and the Asia Pacific region.\n\nUnder the SEDA, YA Global has agreed to subscribe in tranches for up to a maximum of £3 million of the Company's ordinary shares of 0.1 pence each ('Ordinary Shares') over a period of up to 24 months from first use of the SEDA by the Company (or if earlier, 32 months from the date of the agreement). Subscriptions will be priced at a discount to the market price at the time of subscription and will take place at timings and intervals and in sizes determined by the Company, subject to the agreed mechanisms specified under the SEDA such as limitations including marketability which may limit the total amount available under the SEDA.\n\nAndrew Bell, Chairman of Regency Mines Plc, commented: 'Regency's goal in securing the SEDA facility is to have in place a facility that will enable Regency to raise capital efficiently at higher valuations as Regency executes its growth plan and communicates positive results. Having observed the successful use of the SEDA by many AIM companies, we are confident that the SEDA will provide a useful reserve funding instrument for Regency and reduce Regency's overall cost of capital.' \n\nFees in connection with the transaction amount to £50,000, and will be fully satisfied by the issue of 1,900,200 new Ordinary Shares ('Fee Shares') at an effective issue price of 2.63 pence per Fee Share.\n\nApplication will be made to the London Stock Exchange for the Fee Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. It is expected that admission will become effective and that trading will comme...